Callaway Golf “not aware of such discussions” after seeing shock report from Korean news site.
Callaway Golf has issued a quick response after seeing a report from a Korean news site claim the brand is up for sale.
According to a report in The Chosun Daily, a South Korean strategic investor is in the running to acquire Topgolf Callaway Brands.
“Callaway Golf is currently endorsing several top-tier athletes worldwide, including Jon Rahm from LIV Golf and PGA Tour players Xander Schauffele and Sam Burns.”
A South Korean investor is being considered to purchase Topgolf Callaway Brands, as reported by The Chosun Daily. Callaway Golf currently endorses several top athletes in the world, including LIV Golf’s Jon Rahm and PGA Tour players Xander Schauffele and Sam Burns.
Callaway Golf quickly released a statement following a surprising update that they heard.
The report claims:
“According to the investment banking (IB) industry, Callaway Golf’s major shareholders – BlackRock Advisors LLC (12.09%), Providence Equity Partners LLC (11.48%), and Thomas Dundon (10.11%), a founder of Dundon Capital Partners, a Dallas-based private investment firm – have selected a lead manager and are in the process of selling their stakes and management rights.”
It then adds:
“The major shareholders will reportedly spin off Topgolf, a subsidiary of Topgolf Callaway Brands Corp., and sell only Callaway Golf.”
But according to GOLF’s equipment editor Jonathan Wall, Callaway has immediately hit back by saying “we confirm we are not aware of any such discussions”.
Wall tweeted:
“Korean news site reports Callaway Golf is being spun off from Topgolf and sold.
“Callaway issues statement saying “we confirm that we are not aware of any such discussions.”
“This could get interesting…”
Wall then posted Callaway’s reply in full:
While it is our long-standing practice not to respond to market rumors and speculation, in light of today’s unusual market activity, coupled with a recent media report originating in Korea regarding discussions of a potential sale of the Company or its golf equipment business, we confirm that we are not aware of any such discussions. We do not intend to comment further on this topic, and we assume no obligation to make any further announcement or disclosure should circumstances change.”
In 2020, Callaway Golf purchased the sports entertainment company Topgolf. The company that emerged from the merger decided to change its name to Topgolf Callaway Brands, and its current estimated value is close to $3 billion.
Topgolf Callaway Brands Corp. reported sales of more than $4 billion in 2023, which was up 7.2% on 2022.
Callaway’s net income last year was $95m.
The company is currently listed on the New York Stock Exchange (NYSE) and has a market capitalization of $2.5 billion.